Wheat Kings: Saskatchewan rolls against the grain

REGINA – Pound for pound, Saskatchewan is the strongest economy in Canada, according to the Canada West Foundation.

In a study titled "Against the Grain: Saskatchewan Economic Profile and Forecast," economist Jacques Marcil suggests that Canada’s breadbasket will also be its breadwinner in 2009 as the only province expected to post real economic growth.

While not entirely immune to the global economic cold most provinces have caught, Saskatchewan will see GDP growth of a modest 0.7 percent in 2009, which is much more than the expected declines in other jurisdictions.

Last year, Saskatchewan was Canada’s top performing province, posting real GDP growth of 3.1 percent on the back of solid commodity exports — principally potash — as well as strong population and income growth, and healthy domestic spending.

Although "Saskatchewan’s economic growth is not likely to maintain its pace of 2008, it should remain ahead of the Canadian pack," reads the report.

In fact, Saskatchewan is the new Alberta. While it flies under the radar as an oil producer, it does have a burgeoning energy market. But unlike its western neighbor, it’s "pink gold" that is key to this province’s fortunes.

Those who left Saskatchewan for prosperity are
now finding out there’s no place like home.

While other commodity prices such as energy or grain crops are falling, the price of potash is likely to remain high, "not only bringing money to the provincial government but also driving job creation and investment in the province."

Things have been so good for the province’s economy in recent years that the government used its most recent budget to clear its tax policy backlog well ahead of the next election while still balancing its books.

"This is one of many areas where Saskatchewan seems to be immune to the travails of the outside world," states Marcil.

"The rest of Canada should get used to the idea of being led by such a low-key, unassuming champion as Saskatchewan," he adds. "Job layoffs and uncertainty are spreading across the country, but the news is good in Saskatchewan."

Many who left for other provinces, often Alberta, are coming back home — and they’re bringing others with them, says Marcil.

"After 22 years of losing people to other provinces on a net basis, Saskatchewan is now attracting Canadians in search of prosperity."